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It's not about knowing when because, as you say, it's difficult to predict... Still preparing or defending your assets for the possibility would be wise.
by ethanpil 6y ago
It's not about knowing when because, as you say, it's difficult to predict... Still preparing or defending your assets for the possibility would be wise.
- LatteLazy 6y agoPreparing for a crash is easy if you don't care when it is: sell everything and sit on the cash (or better still gold). Of course, if you do that you'll lose out on more from missed opportunities than you save from missed crashes. Soneone who did that in 2008 would be perfectly safe right now. They'd have missed out on quadrupling their money. But they'd be perfectly prepared. So you can do as suits you. But the best strategy is to have a mix of bonds and stock. Never more than 70% bonds (as risk goes UP past roughly that point). The more you are able to deal with big movements (up or down), the more stock. This is what Warren Buffet and others have endorsed for normal every day humans like us. The mathematics backs it up.
- mmargerum 6y agoIt’s only difficult to predict because of the fed pumping money.
- stouset 6y ago“It’s only difficult to predict because of all these unpredictable events.”
- tootie 6y agoMeh. I've let my investments ride through multiple crashes. I know I can't call a top or a bottom. The value always recovers.